Bank of England could launch MNBC around 2030

The MNBC project to be launched by the Bank of England

Will Britons soon be able to use e-pounds? The immediate answer is no. However, the Bank of England and the British Treasury will launch a public consultation on this trending topic.

The two institutions wish to take their time since the consultation on the MNBC project will not be launched until early 2022.

In a press release, the Bank of England specifies that this public consultation has several objectives. On the one hand, it will serve to demonstrate the benefits of an MNBC for users and businesses. On the other hand, it will also be able to determine the possible problems that it could cause.

๐Ÿ‘‰ On the same subject – The United Kingdom is stepping up its research on the creation of a digital currency

An MNBC put into circulation around 2030 in the United Kingdom?

The results of the consultation will allow the UK authorities to determine whether they wish to go further. In other words, if the advantages outweigh the disadvantages, the development of an MNBC will be officially launched.

The Bank of England is emphasizing operational and robust technology to allow the project to move forward, at best in the years 2025 – 2030.

Note also the extreme caution of the central banking institution of the United Kingdom. First, it explicitly states that no decision has been taken on the future development of the MNBC. For the moment, this is only a public consultation.

Second, as MNBC projects advance across the globe, the prospect of 2030 seems very distant. In addition, the potential MNBC would not be intended to replace the existing one, including coins and banknotes.

Is the UK’s caution on MNBC linked to its laissez-faire cryptocurrency policy? Indeed, the authorities do not seem in a hurry to legislate on this subject, unlike their neighbors.

Rumors even point to a rather permissive future legislation, in order to attract investors. And this, even if the British financial regulator, the Financial Conduct Authority (FCA), adopts contradictory positions from one week to the next.

๐Ÿ‘‰ To go further – United Kingdom: excessive regulation of cryptocurrencies is not the priority

MNBC projects multiply around the world

While the UK wants to take its time before launching its potential MNBC, other central banks around the world are not. Within the euro area, the European Central Bank launched a public consultation last summer to determine the usefulness of a digital euro.

Recently, it was Nigeria that communicated on its future digital currency, eNaira, as the inhabitants turn massively to cryptocurrencies. In addition, the Dunbar project, which brings together four central banks (Australia, Singapore, Malaysia, South Africa) is also in the pipeline.

Regardless, MNBCs represent a future for central banks, which see it as a response to the emergence of cryptocurrencies like Bitcoin (BTC). Nonetheless, the 2030 deadline in the UK seems to overlook the speed at which the sector is moving.

๐Ÿ‘‰ Read – MNBCs Will Greatly Improve Fees and Speed โ€‹โ€‹of Transfers, Report Says

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About the author: Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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